H1 2021 China Basic Cloud Service Market Tracking Report

Source:iResearchNovember 09,20216:00 PM Overview


China Cloud Service Market Scale and Structure 

Users and vendors empower each other.

In the first half of 2021, the public cloud market scale hit 123.5 billion yuan, increasing by 48.8%YoY and accounting for 76.2% of the entire cloud market. SaaS companies speed up the upgrading and iteration of their cloud application products to adapt to the fierce market competition, which increases the consumption of public cloud resources. After adopting SaaS, users in various industries introduce basic cloud services to better suit top applications and support business innovation by digital tools. In addition, cloud vendors also use innovative cloud deployment methods, such as promoting distributed cloud construction, to upgrade cloud infrastructure (building intelligent data centers, mobile data centers, edge data centers and other new data centers) ,to expand the public cloud service scope and abilities.

Competitive Landscape of China Basic Cloud Service Industry


Alibaba Cloud, Huawei Cloud and Tencent Cloud are the top 3 players in China’s basic cloud market

In the first half of 2021 Alibaba Cloud, Huawei Cloud, Tencent Cloud are the top 3 players in both the IaaS public cloud market and the IaaS+PaaS public cloud market in China. The market structure is further concentrated. 1) The growth of Internet cloud vendors has slowed down. The migration of large clients and the change of industry policies have influenced the revenues of Internet cloud vendors. 2) The growth of cloud vendors from an IT background is prominent. Thanks to the increasingly tight connection between cloud and industries, the market shares of cloud vendors from an IT background have all increased. As cloud applications among companies are more refined, the market structure might change. Cloud vendors need to attach more importance to building sustainable competitiveness.

Cloud Scenarios-Digital and Intelligent Upgrade of the Energy Industry


Accelerate industry digitalization and drive sustainable development

The energy industry, like manufacturing, is crucial to the digital upgrade of traditional industries. Energy resources are important to the development of the energy industry. The health of the energy industry is the key to the sustainable improvement of people's living standards and the development of enterprise production. To promote the digitalization process of the energy industry, the first step is understanding the characteristics and status quo of China's energy industry and summarizing the commonalities and characteristics, pain points and needs of the industry. The second step is formulating solutions for different links such as exploration in the early stage, production in the middle stage and use in the late stage. Energy issues have attracted the attention of countries all over the world. Energy digitization will effectively improve China's energy structure and help China peak its CO2 emissions before 2030 and achieve carbon neutrality before 2060.


Cloud Computing Will Remain the Foundation


Support reforms in the information and technology industry, the innovation of digital scenarios and the upgrade of digital capabilities

The emerge of concepts related to Web 3.0, such as the metaverse, leads to the upgrade of the interactive model, expansion of Internet functions and content, and changes of pan-Internet industry technologies and products such as the game cloud and video cloud, which gradually arouses discussions in the industry. But the fact that cloud computing is the foundation of industrial innovation and business evolution has never changed. 'Cloud +industry' is gradually surpassing 'cloud+technology' and becoming a focus of the information technology industry. Thanks to its Internet genes, its advantages in serving the Internet industries, and its high penetration in the digital upgrades of traditional industries, cloud computing is able to support and connect the physical world and the digital world. From serving Internet industries to serving traditional industries, from supporting AI and big data to supporting diverse edge equipment and terminals, cloud computing is indispensable for the innovation of digital scenarios and the upgrade of digital capabilities. It is foreseeable that the digital world and the physical world will be more tightly and frequently connected and cloud computing will be more important and is going to provide a solid foundation for innovation in the information and technology industry.





Contents

In the first half of 2021, the scale of China's cloud service market reached 162 billion yuan, increasing by 38.3% YoY. From the perspective of market revenues, cloud resources still account for the largest part and the revenue structure is in the shape of a dumbbell. In terms of the growth model, the market growth benefited from the accelerated digitalization process of corporates and clients' surging demand for cloud services. Most clients in the pan-Internet industry actively use cloud services and have started focusing on construction on the cloud. While, most clients in other industries only use cloud services passively and are still in the early stage. With the deepening industrial Internet and the continuous precipitation of cloud benefits in non-Internet industries, the use of cloud in non-Internet industries will probably become an active choice, which will drive continuous growth of the cloud market.

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